Connect with us

Business

UK should stop blocking G7 financial reforms needed to support developing countries’ Covid-19 response – Financial Transparency Coalition

Published

on

By Kurian Musa

kmusa@correspondent.africa

Washington DC – The UK should stop blocking attempts to implement a global minimum corporate tax that enables developing countries to raise much-needed funds for the Covid-19 response, according to the Financial Transparency Coalition (FTC).

The UK – which is hosting the G7 finance ministers’ meeting on June 3-4, ahead of the summit in Cornwall on June 11-13 – says the aim is to “unite the leading democracies to help the world fight and then build back better from coronavirus.” This year’s G7 meetings will include India, South Africa, Australia, and South Korea.Yet the UK is opposing US President Joe Biden’s proposal for an effective minimum rate, which was initially set at 21 percent but has since been lowered to 15 percent. This is far from the 20- to 30-percent range recommended by the UN Financial Accountability, Transparency and Integrity (FACTI) Panel in early 2021, a measure also backed by the OECD and other international institutions, that would enable developing countries to fund basic social protection measures and purchase vaccines amid the ongoing pandemic.

Chenai Mukumba, Policy Research and Advocacy Manager at Tax Justice Network Africa, said, “While introducing a global minimum tax is not a panacea to the problems within the global tax system, it will go a long way in addressing the issue of low corporate tax collection in many developing countries. The biggest enablers of global corporate tax abuse include the UK, its overseas territories, and other European countries such as the Netherlands, Switzerland, and Luxembourg. As such, while the UK and other European countries continue to benefit from propping up the current global tax system, African countries are suffering from not being able to domestically mobilise resources to support their response to, and recovery from, the pandemic.”

“We therefore call for the increased participation of African countries in charting the way forward on the global corporate tax rate, and are of the view that enablers should not lead in charting the way forward in tackling abusive tax practices,” Mukumba concluded.

As FTC Director Matti Kohonen added, “The UK is hosting the G7 summit and is calling for a strong Covid-19 recovery. However, in reality the British government and other developed countries are lobbying the OECD to block attempts to generate the funds that developing countries desperately need to fight this crisis by expanding social protections to those most impacted, primarily by opposing the introduction of a global minimum corporate tax of at least 25 percent.”

The UK is also blocking other key measures that would alleviate developing countries and enable them to protect their citizens amid the Covid-19 pandemic, such as opposing private creditors from being part of the G20 debt suspension mechanism.

Making matters worse, a recent FTC report revealed that 63 percent of Covid-19 recovery funds in 8 of 9 developing countries surveyed – including Kenya, South Africa, El Salvador, and Bangladesh – went to support big corporations. In contrast, only 22 percent of funds were allocated to social protection, and almost nothing went to informal workers who often constitute the majority of the workforce in those countries.

Madhav Ramachandran, FTC Programme Manager analyst at the Centre for Budget and Governance Accountability, said, “Developing countries like India are struggling to provide basic social protection measures for their citizens. A race to cut corporate taxes, amongst other things, has been a major reason for the reduction in state finance for welfare measures. The G7 must act to stop this alarming trend by backing a global minimum corporate tax, as well as pushing for a digital tax – a proposal which the Indian state has introduced, but which is being opposed by the United States.”

The FTC and its members call on the G7 countries to urgently support the following concrete measures:

  • Implement a minimum corporate tax rate of at least 25 percent in line with the proposal by the UN FACTI Panel, introduce a digital tax, and tackle tax abuse and evasion practices, which would raise much-needed funds for recovery spending.
  • Adopt higher taxes on the wealthy, corporations, and high-income earners, in line with the International Monetary Fund’s proposal to introduce solidarity taxes, and reverse the regressive pandemic-related tax cuts and tax exemptions that have only benefited the rich.
  • Introduce effective accountability and tracking mechanisms to provide transparency on the disbursement of Covid-19 bailout funds, including those provided by international organisations such as the World Bank and the IMF.

Continue Reading
Advertisement
3 Comments

3 Comments

  1. hotshot bald cop

    March 28, 2022 at 10:02 pm

    That’s very good point

  2. hotshot bald cop

    April 12, 2022 at 10:43 pm

    I was just telling my friend about that.

  3. hot shot bald cop

    April 13, 2022 at 7:55 am

    Wonderful views on that!

Leave a Reply

Your email address will not be published.

Energy

Sahara Foundation Promotes Clean Energy With Sahara Impact Fund

The Sahara Impact Fund will provide seed funding of $5,000 each for successful finalists, including incremental funding access based on impact, reach and sustainability matrices targeted at supporting young social entrepreneurs in Africa.

Published

on

Sahara Foundation, the corporate citizenship vehicle of energy and infrastructure conglomerate, Sahara Group, has launched the 2nd Cohort of the Sahara Impact Fund (SIF) and the Governance Unusual Program to support social innovators  creating solutions that increase access to clean energy and promote sustainable environments.

 The project reinforces Sahara Group’s commitment to bringing energy to life responsibly by connecting social innovators with opportunities that will enhance their contribution to eradicating energy poverty and enhancing environmental sustainability. The SIF is a strategic partnership involving Sahara Foundation, Ford Foundation, LEAP Africa and Impact Investors Foundation.

The Sahara Impact Fund will provide seed funding of $5,000 each for successful finalists, including incremental funding access based on impact, reach and sustainability matrices targeted at supporting young social entrepreneurs in Africa. In addition, the Fellows will have mentoring sessions with business leaders at Sahara Group and other private sector partners, to scale up clean energy and sustainable environment innovations.

The inaugural cohort of the SIF produced Fellows from Cameroon, Nigeria, Rwanda and Malawi who are spearheading transformative solutions through their businesses. According to Damilola Asaleye, Co- founder- Ashdam Solar “The learnings from the Sahara Impact Fund fellowship have become a daily guide for my organization to achieve our strategic plans of providing access to clean and affordable energy for all in Nigeria.”

“In addition to the seed capital, which was a great boost to my business, I have also built professional networks with like-minded passionate entrepreneurs from all over Africa,” said Ghislain Irakoze , Founder, Wastezon, Rwanda.

Pearl Uzokwe, Director, Sahara Foundation, said the Sahara Impact Fund and Governance Unusual program will reinforce ongoing conversations around increasing entrepreneurial capacity and inspiring a paradigm shift in governance through individual responsibility. “We are delighted to lead and join the quest of ensuring that no one is left behind when it comes to energy access and shore up expertise and capacity towards providing global solutions for environmental sustainability. We urge social innovators across Africa to apply to be part of this movement today,” she said.

Uzokwe said applications for the SIF are open from 9th May 2022 to 30th May 2022. “Full details of the application process are available across our social media platforms @iamsaharafdn and the Ujana Hub at www.ujanahub.com. Enquiries can also be sent to sahara.foundation@sahara-group.com,” she added.

The maiden edition in 2021 exposed the ten (10) social innovator fellows to blended capacity building sessions in the form of workshops, webinars, immersion sessions, facility tours, cohort meetings, mentoring sessions, one-on-one strategy & finance sessions and Fire chat sessions.

Since inception, Sahara Foundation has implemented various projects across its locations in Africa, Europe, Asia and the Middle East, impacting the lives of over 2,000,000 beneficiaries, with youth accounting for over 50% of the beneficiaries.

Continue Reading

Energy

Asharami Synergy Targets 30% Aviation Fuel Market Share To Enhance Economic Growth

Published

on

Asharami Synergy Limited, a Sahara Group Downstream Company, is investing in technology and innovative solutions to enhance its capacity to fuel seamless economic growth through operations in the aviation fuel market.

Asharami Synergy Limited, which is Nigeria’s first indigenous energy company to operate as an independent Aviation Fuel Marketer, controls about 25 percent market share in the industry, operating as the preferred aviation fuel market for local and international airlines.

Foluso Sobanjo, Head, Sahara Downstream Business, at a press briefing in Lagos, said investments in infrastructure, human capital transformation, quality, health,  safety, and environmental sustainability continues to drive service excellence in the organisation.

He said Asharami Synergy would leverage its technology driven supply chain efficiency across the Downstream value chain to deliver distinctive value and innovative solutions in the market. “We have been at the forefront of Oil and Gas enterprise in the West African region for over twenty years.”

In addition, “Asharami Synergy has a formidable presence in the sector, providing best-in-class fuel procurement and distribution solutions by utilizing innovative technology and improved efficiency across the downstream supply chain. Our quest for increased market share is borne out of our commitment to transforming the sector and spurring economic development,” Sobanjo said.

Asharami Synergy operates in four countries in the Africa and has a combined storage capacity of 81 million litres of Aviation fuel otherwise known as ATK.

The company has over 30 million litres storage capacity for ATK across various locations in Nigeria as well as a fleet of ultramodern bowsers spread across various locations, fueling the development and growth of the national and sub-regional economy by providing seamless access to safe and reliable ATK.

Sobanjo said “safety first and always” is the mantra that drives operations in Asharami Asharami Synergy, a development that has earned the company multiple International Standard Organisation certifications.

He said being a strategic partner of the International Air Transport Association (IATA) gives Asharami Synergy a global credibility that is driven by a statutory self-responsibility that propels its business operations in compliance with the highest global standards.

“Asharami Synergy has several ISO certifications; ISO 9001:2015 (Quality), ISO 14001:2015 (Environmental) and ISO 45001:2018 (Occupational Health and Safety). This reinforces our commitment to bringing energy to life responsibly in all our operations. Our mantra is Safety First, Safety Always, ensuring that the health and safety of our employees and other stakeholders remains top priority in all business operations,” he added.

Asharami Synergy is a vertically integrated and foremost downstream company in the West African region with established and formidable presence in the sector, providing best-in-class fuel procurement and distribution solutions by utilizing innovative technology and improved efficiency across the downstream supply chain for over twenty years.

The company emerged from a consolidation of Sahara Group Downstream Companies with interest in procurement, storage, and distribution of white products across Nigeria.

Continue Reading

Business

Video: Oppo Reno 7 Launch

Published

on

Did you miss the big launch? Here is Bahati the singer and his wife during the Monday virtual launch of the Oppo Reno 7 phone in Kenya.

The colourful launch gives  the phone a leverage in the market ahead of the rest.

Continue Reading

Deal of the day

Trending